What are Frontier Markets?

The Frontier Market Opportunity

Developed markets are dominated by high-frequency traders, exchange traded funds, and hedge fund managers. Emerging markets are no longer the growth opportunity they once were, with many slowing down after previous decades of double digit GDP growth.

The MSCI Emerging Markets index includes countries such as Taiwan, South Korea, Malaysia, Czech Republic, Chile, and Turkey. The distinction between the emerging and the developed has blurred.

Increasing correlations between emerging markets and developed markets are inevitable. So where can an investment be found that presents compelling returns, negative correlation to other markets, and represents a hybrid macro/micro trade all in one?

Only in Frontier Markets.

What are Frontier Markets?

But what are frontier markets, you ask? Frontier markets have two main characteristics. First, they are markets that can typically be defined as small enough to not be on most investors’ radar. Second, they are also usually countries at the beginning of their economic growth cycle with low GDP per capita but high growth and even better prospects for the future as local economies develop.

For determining frontier markets, we use four main criteria: GDP per capita, economic complexity, population, and the presence of a local stock market.

Which Countries Are Considered Frontier Markets?

You can find our list of frontier market countries here. The list was compiled using the four criteria listed above, and totals 143 different countries/territories.

Our Mission

This site’s mission is twofold: to contribute to the pool of knowledge on an otherwise esoteric topic, and to show that these markets are readily accessible to those who know where to look.

This website is maintained by Shalifay Investments (“Shalifay”). Shalifay is a frontier markets-focused investment company. Shalifay endeavours to find investment opportunities in markets that are not fully developed and economies that have leaps and bounds to grow.